Question
In: Statistics and Probability
Suppose that the dollar amount of damage involved in an automobile accident is an exponential random...
Suppose that the dollar amount of damage involved in an automobile accident is an exponential random variable X with mean $1000.
(a) What is the probability that the amount of an accident exceeds $400?
(b) If the deductible is $400, that means, the insurance company only pays the amount exceeding $400. What is the expected value of the amount that the insurance company pays per accident?
Solutions
orchestra answered 2 years agoRelated Solutions
The Fitzgeralds (who have a PAP) are involved in an automobile accident that was not their...
The Fitzgeralds (who have a PAP) are involved in an automobile
accident that was not their fault on their way home from a dinner
party. Although they are unharmed, their car is disabled. The
police recommend that they leave the car by the side of the road
and take a taxi home. When the Fitzgeralds return to the scene of
the accident, they find that their car has been stripped down to
the chassis. The Fitzgeralds submit a claim to...
Suppose the national average dollar amount for an automobile insurance claim is $565.412. You work for...
Suppose the national average dollar amount for an automobile
insurance claim is $565.412. You work for an agency in Michigan and
you are interested in whether or not the state average is less than
the national average. The hypotheses for this scenario are as
follows: Null Hypothesis: μ ≥ 565.412, Alternative Hypothesis: μ
< 565.412. A random sample of 46 claims shows an average amount
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statistic and p-value...
Suppose the national average dollar amount for an automobile insurance claim is $890.34. You work for...
Suppose the national average dollar amount for an automobile
insurance claim is $890.34. You work for an agency in Michigan and
you are interested in whether or not the state average is greater
than the national average. The hypotheses for this scenario are as
follows: Null Hypothesis: μ ≤ 890.34, Alternative Hypothesis: μ
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Suppose X is an exponential random variable with mean 5 and Y is an exponential random...
Suppose X is an exponential random variable with mean 5 and Y is
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Suppose that every driver faces a 4% probability of an automobile accident every year. An accident...
Suppose that every driver faces a 4% probability of an
automobile accident every year. An accident will, on average, cost
each driver $13,000. Suppose there are two types of individuals:
those with $104,000.00 in the bank and those with $6,500.00 in the
bank. Assume that individuals with $6,500.00 in the bank declare
bankruptcy if they get in an accident. In bankruptcy, creditors
receive only what individuals have in the bank. Assume that both
types of individuals are only slightly risk...
Suppose that every driver faces a 4% probability of an automobile accident every year. An accident...
Suppose that every driver faces a 4% probability of an
automobile accident every year. An accident will, on average, cost
each driver $7,000. Suppose there are two types of individuals:
those with $56,000.00 in the bank and those with $3,500.00 in the
bank. Assume that individuals with $3,500.00 in the bank declare
bankruptcy if they get in an accident. In bankruptcy, creditors
receive only what individuals have in the bank. Assume that both
types of individuals are only slightly risk...
Suppose every driver faces a 1% probability of an automobile accident every year. An accident will,...
Suppose every driver faces a 1% probability of an automobile
accident every year. An accident will, on an average cost each
driver $10,000. Suppose there are two types of individuals: those
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The national percentage of automobile accident fatalities that are alcohol related is 39%. In a random...
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are alcohol related is 39%.
In a random sample of 96 automobile accident fatalities in the
state of Connecticut, 44
were alcohol related. Is this sufficient evidence to say that
Connecticut has a higher
percentage of alcohol related automobile fatalities?
c. Estimate using a 99% confidence interval the proportion of
automobile fatalities in
Connecticut that are alcohol related.
Suppose that every driver faces a 2% probability of an automobile accident every year.
4. Individual Problems 20-4Suppose that every driver faces a 2% probability of an
automobile accident every year. An accident will, on average, cost
each driver $13,000. Suppose there are two types of individuals:
those with $78,000.00 in the bank and those with $3,250.00 in the
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bankruptcy if they get in an accident. In bankruptcy, creditors
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Assume that an uncle of yours was injured on 1/1/17 in an automobile accident. The accident...
Assume that an uncle of yours was injured on 1/1/17 in an
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driver's fault. As the result of the accident, your uncle is not
able to return to his medical practice where he earned $280,000
during calendar year 2016. Your uncle's accident occurred on his
60th birthday (some birthday) and he planned (prior to the
accident) to work another eight years (until the end of 2024).
Your uncle has...
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